BILL NUMBER: SB 1099	CHAPTERED  09/16/99

	CHAPTER   425
	FILED WITH SECRETARY OF STATE   SEPTEMBER 16, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 16, 1999
	PASSED THE SENATE   SEPTEMBER 9, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 7, 1999
	AMENDED IN ASSEMBLY   AUGUST 30, 1999
	AMENDED IN ASSEMBLY   AUGUST 23, 1999
	AMENDED IN ASSEMBLY   JULY 15, 1999
	AMENDED IN ASSEMBLY   JULY 7, 1999
	AMENDED IN SENATE   JUNE 9, 1999
	AMENDED IN SENATE   APRIL 20, 1999

INTRODUCED BY   Senators Knight, Baca, Chesbro, Costa, Dunn, Haynes,
Johannessen, Kelley, O'Connell, and Perata
   (Coauthors:  Assembly Members Aanestad, Baldwin, Battin, Davis,
House, Leach, Nakano, Robert Pacheco, Runner, Strickland, Wayne,
Wiggins, and Zettel)

                        FEBRUARY 26, 1999

   An act to add and repeal Article 3.7 (commencing with Section
15346) of Chapter 1 of Part 6.7 of Division 3 of Title 2 of the
Government Code, relating to defense conversion.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1099, Knight.  California Defense Retention and Conversion Act
of 1999.
   Existing law provides for various activities in regard to defense
conversion and military base retention and reuse efforts in the
state.
   This bill would enact, until January 1, 2007, the California
Defense Retention and Conversion Act of 1999, to establish the
California Defense Retention and Conversion Council in the Trade and
Commerce Agency.  The bill would set forth the membership and duties
of the council in regard to defense retention and conversion and
military base reuse activities in the state, including specified
activities developed by the former California Defense Conversion
Council.  This bill would require the council to prepare a study
considering strategies for the long-term protection of lands adjacent
to military bases and to submit to the Governor and the Legislature
a report on the study with any recommendations.  It would require the
Trade and Commerce Agency to establish a Defense Retention Grant
Program, with input and assistance from the council.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Article 3.7 (commencing with Section 15346) is added to
Chapter 1 of Part 6.7 of Division 3 of Title 2 of the Government
Code, to read:

      Article 3.7.  California Defense Retention and Conversion Act
of 1999

   15346.  This article shall be known and may be cited as the
California Defense Retention and Conversion Act of 1999.
   15346.1.  The Legislature finds and declares as follows:
   (a) For over half a century, California's industries,
universities, businesses, and workers have contributed to our nation'
s defense, utilizing their capital, talents, and skills to develop
and bring to production important new technologies and advanced
weapons systems, aircraft, and missiles.
   (b) Defense spending in California peaked at sixty billion dollars
($60,000,000,000) in 1988.  Since then, it has decreased by 16
percent with the resulting loss of 126,000 jobs.  The Commission on
State Finance projected a further 22 percent reduction to
thirty-seven billion dollars ($37,000,000,000) in 1997, with a loss
of another 81,000 jobs.  California is expected to experience the
most severe impact of defense cuts since 1994.
   (c) California has experienced four rounds of base closures
resulting in the closure or realignment of 29 bases since 1988.
Additional bases may be considered for closure in future closure
rounds.
   (d) California lost more federal payroll jobs from its 29 military
base closures under rounds one to four, inclusive, than all of the
rest of the states put together.  The reduced military payroll,
including military and civilian employees, in California is
approximately 101,000 jobs.  About 300,000 private sector defense
industry jobs in California have been lost.
   (e) California needs a focused, coordinated defense retention and
conversion program within the state in order to protect the existing
defense installations and facilities within the state and to assist
those communities that have experienced an installation's closing.
   (f) Currently, there are over 300,000 active duty and civilian
defense personnel in California.
   (g) The direct Department of Defense expenditures in California
are over thirty billion dollars ($30,000,000,000) for employees,
contracts, and capital investment.
   (h) California has over 36 major and 25 minor active military
installations.
   (i) The Department of Defense pays ten million dollars
($10,000,000) annually in fees, permits, and licenses within the
state.
   (j) Having been the leader in the nation's defense effort, the
state must now also assume the role as leader in defending existing
military installations within its borders.  That role will require a
coordinated effort to ensure that California promotes the necessity
of existing defense facilities, assist local governments and
organizations in planning retention efforts, and design and implement
a single unified plan for active defense retention efforts on the
federal level.
   (k) It is the intent of the Legislature that the state's role in
defense retention, conversion, and military base reuse be
consolidated in the Trade and Commerce Agency.
   15346.2.  The Legislature recognizes the potential for federal
legislation to close additional military installations nationwide.
In an effort to be proactive in retaining these facilities within
California that are necessary for the defense of the nation and to
provide for a single, focused defense of these installations, the
California Defense Retention and Conversion Council is hereby created
in the Trade and Commerce Agency.
   15346.3.  The California Defense Retention and Conversion Council
shall consist of the following members, who shall be appointed as
follows:
   (a) The Governor shall have 11 appointees, who may include, but
are not limited to, the following:
   (1) The Secretary of Trade and Commerce, or his or her designee.
   (2) The Secretary of Environmental Protection, or his or her
designee.
   (3) The Director of Employment Development, or his or her
designee.
   (4) The Director of Planning and Research, or his or her designee.

   (5) The Director of the Energy Resources, Conservation and
Development Commission, or his or her designee.
   (6) The Director of Transportation, or his or her designee.
   (7) The Director of the Employment Training Panel, or his or her
designee.
   (8) The Secretary of Resources, or his or her designee.
   (9) A member who is an elected public official from local
government representing a community with an active defense
installation.
   (10) A member who is an elected public official from local
government representing a community with a closed defense
installation.
   (11) A public member selected at large.
   (b) The Speaker of the Assembly shall have two appointees who may
include, but are not limited to, members representing labor,
business, or local government.
   (c) The Senate Committee on Rules shall have two appointees who
may include, but are not limited to, members representing labor,
business, or local government.
   (d) Nonvoting members, to consist of all of the following:
   (1) At his or her option, the President of the University of
California, or his or her designee.
   (2) The Chancellor of the California State University, or his or
her designee.
   (3) The Chancellor of the California Community Colleges, or his or
her designee.
   (4) The Speaker of the Assembly, or his or her designee.
   (5) The President pro Tempore of the Senate, or his or her
designee.
   (6) A representative from each branch of the United States Armed
Forces within California, appointed by the Governor.
   15346.4.  (a) The members of the council shall elect a member to
be the chairperson of the council.
   (b) The Office of Military Base Retention shall provide staff
support to the council.
   (c) It shall be the purpose of the council to provide a central
clearinghouse for all defense retention, conversion, and base reuse
activities in the state.
   15346.5.  The council shall do all of the following:
   (a) Develop and recommend to the Governor and the Legislature a
strategic plan for state and local defense retention and conversion
efforts.  The plan shall address the state's role in assisting
communities with potential base closures and those impacted by
previous closures.  The council may coordinate with other state
agencies, local groups, and interested organizations on this
strategic plan to retain current Department of Defense installations,
facilities, bases, and related civilian activities.  The opportunity
shall be provided for public review and comments on the strategic
plan prior to submission to the Governor and the Legislature.
Notwithstanding Section 7550.5, the plan shall be submitted to the
Governor and the Legislature on or before December 1, 2000.
   (b) Conduct outreach to entities and parties involved in defense
retention and conversion across the state and provide a network to
facilitate assistance and coordination for all defense retention and
conversion activities within the state.
   (c) Help develop and coordinate state retention advocacy efforts
on the federal level.
   (d) (1) Conduct an evaluation of existing state retention and
conversion programs and provide the Legislature recommendations on
the continuation of existing programs, including, but not limited to,
the possible elimination or alteration of those programs.
Notwithstanding Section 7550.5, this evaluation shall be transmitted
to the Legislature on or before November 1, 2000, and again on or
before November 1, 2003.
   (2) The council may provide recommendations to the Legislature on
the necessity of new programs for defense retention and adequate
funding levels.
   (e) Utilize and update the plan prepared by the Defense Conversion
Council as it existed on December 31, 1998, to minimize California's
loss of bases and jobs in future rounds of base closures.  This plan
shall include, but not be limited to, all of the following:
   (1) Identification of major installations in California.
   (2) Determination of how best to defend existing bases and base
employment in this state.
   (3) Coordination with communities that may face base closures.
   (4) Development of data and analyses on bases in this state.
   (5) Coordination with the congressional delegation, the
Legislature, and the Governor.  With the consent of the appropriate
authority, the council may temporarily borrow technical, policy, and
administrative staff from other state agencies, including the
Legislature.
   (f) Where funds and resources are available, the council may
undertake all of the following activities:
   (1) Provide a central clearinghouse for all base retention or
conversion assistance activities, including, but not limited to,
employee training programs and regulation review and permit
streamlining.
   (2) Provide technical assistance to communities with potential or
existing base closure activities.
   (3) Provide a central clearinghouse for all defense retention and
conversion funding, regulations, and application procedures for
federal or state grants.
   (4) Serve as a central clearinghouse for input and information,
including needs, issues, and recommendations from businesses,
industry representatives, labor, local government, and communities
relative to retention and conversion efforts.
   (5) Identify available state and federal resources to assist
businesses, workers, communities, and educational institutions that
may have a stake in retention and conversion activities.
   (6) Provide one-stop coordination, maintain and disseminate
information, standardize state endorsement procedures, and develop
fast-track review procedures for proposals seeking state funds to
match federal defense conversion funding programs.
   (7) Maintain and establish data bases in such fields as
defense-related companies, industry organization proposals for the
state and federal defense industry, community assistance, training,
and base retention, and provide electronic access to the data bases.

   15346.8.  (a) The council shall meet at the times and in places it
deems necessary, but no less than once a quarter.  Whenever
possible, meetings shall be held in Sacramento in state facilities.
   (b) Under no circumstances shall the council permit absentee or
proxy voting at any of its proceedings.  However, a vote by a
designee, as provided in paragraphs (1) to (8), inclusive, of
subdivision (a), and paragraphs (1) to (5), inclusive, of subdivision
(d), of Section 15346.3, shall not be construed to be an absentee or
proxy vote under this subdivision.
   (c) Council members may receive reimbursement for travel costs
directly related to council attendance if funding is available.
   (d) The council shall apply for grants and may seek contributions
from private industry to fund its operations.
   (e) The council shall actively solicit and accept funds from
industry, foundations, or other sources to promote and fund research
and development of dual technologies, to identify alternative
applications of military technologies, to initiate market research
for identifying possible defense conversion products, to establish
worker and business training programs, and to operate pilot projects
to evaluate and demonstrate useful approaches.  These efforts should
be coordinated with the regional technology alliances.
   15346.9.  In addition to the duties specified in Section 15346.5,
the council shall do all of the following:
   (a) At the request of a council member, the council may review
actions or programs by state agencies that may affect military base
retention and reuse and offer comments or suggest changes to better
integrate these actions or programs into the overall state strategic
plan required pursuant to subdivision (a) of Section 15346.5.
   (b) The council shall prepare a study considering strategies for
the long-term protection of lands adjacent to military bases from
development that would be incompatible with the continuing missions
of those bases.  The study shall include the effects of local land
use encroachment, environmental impact considerations, and population
growth issues.  The study shall recommend basic criteria to assist
local governments in identifying lands where incompatible development
may adversely impact the long-term missions of these bases.  The
study shall also identify potential mechanisms, including
recommendations for changes in law at the local or state level, to
address these issues.  In conducting this study, the council may use
the Naval Air Station at Lemoore and Edwards Air Force Base as case
studies.
   The council shall hold public hearings on this study, including at
least one in the vicinity of either Lemoore or Edwards.
Notwithstanding Section 7550.5, the council shall prepare and submit
to the Governor and the Legislature by November 30, 2000, a report on
this study with any recommendations.
   15346.10.  The Trade and Commerce Agency, with input and
assistance from the council, shall establish a Defense Retention
Grant Program to grant funds to communities with military bases to
assist them in developing a retention strategy.  The agency may use
grant criteria similar to those for existing defense conversion grant
programs as a basis for developing the new grant program.  To
discourage multiple grant applications for individual defense
installations in a region, the criteria shall be drafted to encourage
a single application for grant funds to develop, where appropriate,
a single, regional defense retention strategy.  The structure,
requirements, administration, and funding procedures of the grant
program shall be submitted to the Legislature for review at least 90
days prior to making the first grant disbursement.  The agency may
make no grant award without the local community providing at least 50
percent or more in matching funds or in-kind services.
   15346.12.  The Trade and Commerce Agency shall adopt regulations
to implement the programs authorized in this chapter.  The agency
shall adopt these regulations as emergency regulations in accordance
with Chapter 3.5 (commencing with Section 11340) of Part 1, and for
purposes of that chapter, including Section 11349.6, the adoption of
the regulations shall be considered by the Office of Administrative
Law to be necessary for the immediate preservation of the public
peace, health and safety, and general welfare.  Notwithstanding
subdivision (e) of Section 11346.1, the regulations shall be repealed
within 180 days after their effective date, unless the agency
complies with Chapter 3.5 (commencing with Section 11340) of Part 1
as provided in subdivision (e) of Section 11346.1.
   15346.13.  This chapter shall remain in effect only until January
1, 2007, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2007, deletes or extends
that date.
